How to calculate wage for W2 line 1 if your business paid the employee’s share of taxes?
If you didn’t withhold social security and Medicare tax from your employee’s wage and decided to pay them yourself, you need to include that amount in the wages reported on W2.
For instance, if you pay $200 to your employee and decided to pay his share of social security (6.2%) and Medicare tax (1.45%), on your payroll spreadsheet you need to calculate the wages and include the taxes in the gross wages.
To figure out the amount, do $200/ (1-0.062-0.0145) =$216.57. That is the wages to report of W2 line 1,3, and 5, Form 944, and Form 940 (FUTA).
You would use $216.57 to calculate the employee social security tax and Medicare withheld and report them of Form 941 or Form 944 as if you withheld them from your employee’s salary. You would report the employer’s share of taxes as well on Form 941 or Form 944 but not on W2 Form.
For more information, read IRS Publication 15-A page 21-22 (Employee’s Portion of Taxes Paid by
Employer).
E filing with SSA
click on Business Services Online
Click on Login if you have signed up already otherwise, register.
Click on Report Wages to Social Security.
Click on Create/Resume Forms W2/W2 online.
Enter the year
Enter your business name or select it from the menu
Enter the EIN or it should appear
Select Regular W-2
Click Continue
Add contact info.
Kind of Payer
Check to box for the type of tax you would pay related to the W2 like Form 944 or 941.
Kind of Employer
Select None Apply.
Click on one of the previous year WFID if you have entered information for a w2 last year otherwise click Continue.
Complete the W2.
At the bottom click on save and create a new w2 or the appropriate button.
When done with the last w2, click on Save and go to W2 list.
W3 should be the total of payroll spreadsheet gross wages and total of employee share of tax withheld.
Once you verified the W3 is accurate, click on Continue.
Follow the instructions to save a copy of W-2/W-3 and review. Print them out of your business record and to give to your staff for review as well.
Later sign back in and sign and submit the W-2/W-3 to the Social Security Administration (SSA).
When you e-file W-2/W-3 with SSA, don’t mail them a copy.
Make sure to save and print the confirmation receipts.
The confirmation receipts should be kept for around 7 years.
Click on Go to Save PDF
Save the final PDF and print it out as well.
Give your staff their copies and file the business copies.
Click on EWR Home when done.
Click logout.
What is the difference between a w2 and a w3?
A W-2 is the total wages you paid during the year by employer and social security and Medicare taxes you withheld from each employee’s wages.
W-3 is the total by category of all the W-2s you filed for all your employees for the year.
Free Payroll Spreadsheet
If you don’t have a payroll software, we have free payroll spreadsheets in our Free Download you could download and track your payroll to be able to file your payroll taxes at the end of the year accurately.
How to E-File W2 and W3 with Social Security Administration
Disclaimer:
“I am not an attorney to practice law. I am not allowed to draft legal documents, give advice on legal matters including immigration, or charge a fee for these activities.” Our articles are informative and based on our knowledge and experience. They are for educational purpose only. Use them at your own discretion.
Affiliate Links Disclaimer:
Our articles contain affiliate links. When you click on one of our affiliate links and make a purchase, we will receive a commission. We thank you very much for your support!
Please Find About our Products and Links Below
Free Download
Would you please check the “Free Download” section on our website for budget spreadsheet, budget planner PDF, tax forms, motivational quotes, checklists, and more for you do download. You don’t need to subscribe to access them. We would like to have you in our community where we interact and encourage each other to reach our goals. We invite you to join our email list, but it is not required to download from Free downloads.
https://ninasoap.com/free-downloads/
Our Objectives
At Nina’s Soap (Liberman Consulting L.L.C.), you would find information to live a quality life within budget and increase your net worth. Topics covered include personal finance, investment, business management, cooking from scratch and growing some vegetables and fruit to save money and eat healthy.
For more, would you please check our blog:
Contact Information: care@ninasoap.com
You Tube Channel:
Are you a visual type person? We got you covered! You can watch video contents including how to file your business tax returns yourself at:
https://www.youtube.com/c/LibermanConsultingLLC
Liberman Consulting L.L.C. Podcast:
Do you like to listen to podcast while you are busy working to maximize your time and learn at the same time? You can listen to contents including how to save money and create multiple sources of income at:
https://www.buzzsprout.com/1585738/
Join Us for Free
You are invited to join us where you could ask questions, stay motivated and work toward reaching your financial goals.
How to Find Previous Articles
To make it easy to navigate our website, would you please check the side bar? Under “Post Archives”, are our “categories”. The links to our prior articles are saved under their appropriate categories. Would you please click on any category under “Post Archives” to read the titles of previous articles and click on the link of your interest to open the article.
Welcome to Our Financial Success Group!
To learn more tips on how to live below your income without sacrificing the quality of your life and start building wealth, would you please join our community for FREE by subscribing here:
https://ninasoap.com/membership-join/
Our Online Stores
Welcome to Nina’s Soap our Natural Products Store
Our Online Stores
Welcome to Nina’s Soap our Natural Products Store
Natural soaps are handmade with quality grade natural unrefined oils and butters, food grade sodium hydroxide, and herbs grown in our garden without pesticide or chemical fertilizer—- no additives, no fragrance, no dye.
Towels, washcloths, and cloth napkins are natural and eco-friendly alternatives of paper towels, paper napkins, and tissue papers for you to enjoy in the comfort of your home while saving money and the environment.
Best Seller: Nina’s Soap Flour Sack Individual Hand Towel – Set of 5: Small size cloth napkins to use as individual hand towels in the bathroom instead of paper towels or as napkin in the kitchen for family dinners:
https://ninassoap.com/product/ninas-soap-flour-sack-hand-towel-set-of-5/
Welcome to Liber Label our Apparel Store
Customs design clothing, home décor, accessories, and stationery with motivational quotes to lift your mood every day.
Business planner inserts, business tax checklist, to do list, many printable of our digital downloads can be purchased here and shipped directly to your door.
Welcome to LiberOutlet.com our Resale Store
New and used office supplies, toys, small kitchen appliances, household products, packaging supplies at a bargain price.
Welcome to Liberdownload.com, Digital Products Store
Budget and Monthly Expense Tracker, Checklist to create your online store, Inventory and Sales Excel Template…tools you need to manage your money, start and run your business successfully, and reach your financial success.
If you are a Sole Proprietor, a Limited Liability Company (LLC), an S Corporation, or an LLC taxed as an S Corporation, articles and videos on our channel would be helpful to file your business tax returns. If you need more help and would like to meet with us, would you check if our Group meeting session is the best fit for you.
Business Consulting Session: Virtual Group Meeting for new Business Owners that need help organizing their business income and expenses and be able to file business taxes themselves:
Small Business Group Session-Quarter 1:
https://liberdownload.com/downloads/small-business-group-session-quarter-1/
Small Business Group Session-Quarter 2:
https://liberdownload.com/downloads/small-business-group-session-quarter-2/
Small Business Group Session-Quarter 3:
https://liberdownload.com/downloads/small-business-group-session-quarter-3/
Small Business Group Session-Quarter 4:
https://liberdownload.com/downloads/small-business-group-session-quarter-4/
Affiliate Links:
Bluehost: We host our websites at Bluehost and like their service. They take the time over the phone to help solve website issues
https://www.bluehost.com/track/ninasoap/
Please Register for Free
Leave a Comment